July 23, 2010 / 4:06 PM / 9 years ago

Portuguese banks pass stress test - Bank of Portugal

LISBON (Reuters) - All of Portugal’s banks that faced stress tests carried out by European authorities have passed, the Bank of Portugal said on Friday.

The financial institutions tested in Portugal are Millennium bcp, Banco BPI, Espirito Santo Financial Group — the holding company of Banco Esprito Santo — and state-owned Caixa Geral de Depositos. “The four Portuguese banking groups showed a high level of resistance in the case of the adverse scenario,” the bank said in a statement. “This means that no measures of recapitalisation are necessary for Portuguese banks.”

The four banks had been expected to pass after government officials said in recents weeks they were confident of the solidity of Portugal’s banking system. Overall, the test covered 74 percent of all assets in Portugal’s banking system, the central bank said.

Portugal has been hit hard by the euro zone debt crisis and its banks have struggled to raise financing in capital markets in recent months.

However, because there are no regional banks like in neighbouring Spain and due to the fact that there was no housing bubble in Portugal, its banks are in relatively solid shape.

Reporting by Sergio Goncalves and Axel Bugge

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